UNIVERSITY OF ELDORET

School Of Science
(Dept. of mathematics and computer science)
AUCTION SYSTEM APPLICATION
An application for buyers and sellers to auction their items.
Supervisor

: DR. MZ MAPELU

Submitted by: NJUGUNA ANTONY MWANGI

COM/056/12
Thursday 4th Aug 2016.

This project report is submitted to University of Eldoret, Department of Mathematics and

Computer Science, in partial fulfillment of the requirements of the Degree of Bachelor of
Science in Computer science.

DECLARATION
This project is not copied from a different system. It is an original one. No duplication or any
reproduction of this document should be done without the permission of the author. No duplication
and therefore be used for implementation only.
Signature
COM/O56/12

NJUGUNA ANTONY MWANGI

Date
......................

.....................

This project has been submitted as part fulfillment of requirement for the BSc. Degree in Computer
Science of the University of Eldoret (COM 423 Computer Project II), with my approval as the
university supervisor.
Signature
Date
SUPERVISOR

DR. Z M MAPELU

......................

......................

DEDICATION
I dedicate my project to my parents for their love and support, and to my lecturers and fellow
students.

ACKNOWLEDGMENT
My express thanks and gratitude and thanks to Almighty God, my family, lecturers, classmates and
friends without whose uncontentious support, I could not have completed this project.
I wish to place on my record my deep sense of gratitude to my project guide, Dr.Mapelu for his
constant motivation and valuable help through the project work. Express my gratitude to Madam
Siele for her valuable suggestions and advices throughout the Software Engineering course.

ABSTRACT
The auction system application is an android mobile application that is used to sell and buy items.
The platform facilitates the buying and selling of items.
The buyer who in this case is the auctioneer post his/her item on the application, other users (the
bidder) in this case views the item details and if interested bids on the item.
The bidder post his/her bid and the auctioneer contacts the bidder with the highest bid
The main objective of the online auction system is to enhance the usability of auction sites as
compared to other auction sites such as ebay. When developing a software system, there is need to
determine ways and procedures to follow. The approaches in requirement engineering include:
requirements elicitation, analysis, specification and validation. Elicitation techniques are interviews,
observation and research. In analysis modeling is the best tool. Architectural design, data design,
interface design and detailed design are the aspects to be considered in design of the application.
Modeling and interface prototyping are the main techniques in design. Use cases and data flow
diagrams are important in analyzing the result This project has been developed taking into
consideration the average users of the mobile applications.

Contents
DECLARATION..................................................................................................................................3
DEDICATION......................................................................................................................................4
ACKNOWLEDGMENT......................................................................................................................5
ABSTRACT.........................................................................................................................................6
Chapter 1: INTRODUCTION..............................................................................................................8
1.1 BACKGROUND..................................................................................................................8
1.2 PROBLEM STATEMENT....................................................................................................8
1.3 OBJECTIVES.......................................................................................................................8
1.4 JUSTIFICATION..................................................................................................................9
1.5 SCOPE..................................................................................................................................9
1.6 CONSTRAINTS..................................................................................................................9
1.7 SOLUTION STRATEGY.....................................................................................................9
1.8 FEASIBILITY STUDY......................................................................................................10
1.9 FEASIBILITY MATRIX....................................................................................................10
Chapter 2: LITERATURE REVIEW..................................................................................................13
Chapter 3: METHODOLOGY...........................................................................................................18
3.1 REQUIREMENT ELICITATION.......................................................................................18
3.2 REQUIREMENT ANALYSIS............................................................................................18
3.3 REQUIREMENT SPECIFICATIONS................................................................................18
3.4 DESIGN..............................................................................................................................19
3.4.1 DATA DESIGN......................................................................................................19
3.4.2 ARCHITECTURAL DESIGN................................................................................19
3.4.3 INTERFACE DESIGN...........................................................................................19
3.4.4 DETAILED DESIGN.............................................................................................19
Chapter 4: SYSTEM ANALYSIS AND DESIGN.............................................................................20
4.1 SYSTEM REQUIREMENT SPECIFICATION.................................................................20
4.1.1 USE CASE DIAGRAM.........................................................................................20
4.1.2 DATA FLOW DIAGRAMS....................................................................................21
4.1.3 ENTITY RELATIONSHIP DIAGRAM.................................................................22
4.1.4 DATA DICTIONARY............................................................................................23
4.2 SOFTWARE DESIGN SPECIFICATION..........................................................................24
4.2.1 DATA DESIGN......................................................................................................25
4.2.2 ARCHITECTURAL DESIGN...............................................................................25
4.2.3 INTERFACE DESIGN..........................................................................................26
4.2.4 DETAILED DESIGN............................................................................................35
4.2 SYSTEM TESTING AND IMPLEMENTATION..............................................................37
4.2.1 TESTING PROCESS......................................................................................................38
4.2.2 TEST CASES..................................................................................................................39
Chapter 5: CONCLUSION AND RECOMENDATION....................................................................41
5.1 CONCLUSION..................................................................................................................41
5.2 RECOMENDATION.........................................................................................................41
REFERENCES...................................................................................................................................42

Chapter 1: INTRODUCTION
1.1 BACKGROUND
Auctions are among the oldest economic institutions in place. They have been used since antiquity
to sell a wide variety of goods, and their basic form has remained unchanged. In this dissertation,
we explore the efficiency of common auctions when values are interdependent- the value to a
particular bidder may depend on information available only to others-and asymmetric. In this
setting, it is well known that sealed-bid auctions do not achieve efficient allocations in general since
they do not allow the information held by different bidders to be shared.
Typically, in an auction, say of the kind used to sell art, the auctioneer sets a relatively low initial
price. This price is then increased until only one bidder is willing to buy the object, and the exact
manner in which this is done varies. In my model a bidder who drops out at some price cannot
reenter at a higher price.
With the invention of E-commerce technologies over the Internet the opportunity to bid from the
comfort of ones own home has seen a change like never seen before. Within the span of a few short
years, what may have began as an experimental idea has grown to an immensely popular hobby, and
in some cases, a means of livelihood, the online auction gathers tremendous response everyday, all
day. With the point and click of the mouse, one may bid on an item they may need or just want, and
in moments they find that either they are the top bidder or someone else wants it more, and youre
outbid! The excitement of an auction all from the comfort of home is a completely different
experience.
Society cannot seem to escape the criminal element in the physical world, and so it is the same with
online auctions. This is one area where in a question can be raised as to how safe online auctions.
1.2 PROBLEM STATEMENT
The current system in place do not have a mechanism to verify between real and auction bots thus
the seller may close the bid bearing in mind that his product has got a buyer only to realize later it
was an online auto bidding bot.
The current systems in place do not provide a mechanism to check the product quality thus the
buyer may be sold fake or a product different from what he was expecting.
Nowadays there are very many sites which claim that they are offering auction services but they
only want to generate traffic on their sites thus wasting a lot of peoples time.
The current systems in place do not provide a mechanism for the buyer and seller to know each
others name, they just provide usernames of which the customers may provide wrong information
1.3 OBJECTIVES
1. The purpose of this project is to build an auction system application, a place for buyers and
sellers to come together and trade almost anything.
2. The system consists an option where registered users can post new auctions, place bids in
order to buy the items on auction and contact sellers..
3. The project also facilitates the user having both vendor and customer permission. That is if
he sells the product then he is the vendor while if he purchases the product he is the
customer.
4. The project intends to provide a mechanism to eliminate the probability of auto bidding
bots.
5. The project will in future provide for middle man services like escrow whereby vendors and
customers can pay online and have the goods delivered to them.

1.4 JUSTIFICATION
The software is to be designed for online auctions, thus allowing to auction goods among buyers
and demands among suppliers.
An intuitive graphical user interface is to be offered, that must be accessible through the mobile
application after installation .
The auctions shall be running in real-time. This means that clients always have current information
visible. This is important for short time auctions, where the frequency of bids is relatively high.
An auction may consist of several slots, allowing the buyer to split the material desired among
several suppliers. This allows to prevent a dependency on a single supplier only, as well as to split
delivery.
Different auctions may depend on each other. For example, depending on the results of
simultaneous auctions, the buyer purchases percentages of competing materials.
Persons may participate in an auction in different roles: the auctioneer, the bidders, the originator of
the auction (buyer in reverse auctions, seller in the normal auctions), and guests shall be admitted.
Different roles get different information at hand. Only the auctioneer can co-relate the bids to their
bidders during the auction. Bidders appear to each other anonymously, but know how many
competitors there are.
The auction times may vary. Very short auctions may have an auction time as short as 60 minutes.
Typical auction times are 1-36 hours, consisting of a main part and an extension part.
A login mechanism is imperative. Passwords are distributed through safe channels.
1.5 SCOPE
The mobile application system will consists of the buyer and seller of consumer goods.
In this, the seller will post the product with the additional information such as images and
description of the product.
The buyer has to select his product of choice and start bidding.
The bidding will have a specific time which will be set by the seller who is the bidder. The buyer
with the highest bid will get the product after payment arrangements are made.
1.6 CONSTRAINTS
The limitations of the Auction System application include
The programming language Android not fully class taught programming languages requires an
extra mile in mastering it.
The project is needed to be complete in one semester. This is a short period of time that is
challenging to implement fully the system with effort of single individual.
Developing the system individually is extremely difficult since most systems/ softwares are
developed by a team of software developers but this is personal or an individual.

1.7 SOLUTION STRATEGY

The software shall be accessed installation on android operating systems. Together with the
requirement of an active, up-to-date graphic user interface, On the one hand, the downloading time
and therefore excludes the use of complex frameworks.

High security standards are crucial. Any kind of data disclosure or manipulation must be prevented.
SSL is to be implemented as it is the best choice, being supported by common browsers.
Privacy- The server is responsible for not revealing any information to any auction participant that
the participant is not allowed to see.
In short term auctions, the synchronization of client and server times is essential. An appropriate
protocol must ensure that the server does not close the auction if a participant still believes it is
open. A two-phase dynamic protocol is used for this purpose in our system.
The server must be robust with respect to any possible occurring failures.
Consistency of the auction data must always be ensured. This makes it necessary to use a robust
industrial standard database such as MYSQL, SQLITE or ORACLE and define a suitable number
of plausibility checks.
The realization of the web contents shall be as simple as possible. No extra gadgets, but a full
concentration on functionality and user comfort. Of the current technologies for dynamic web
pages, the JSP (Java Server Pages) technology supports straightforward development and fits very
well into project's Java-based architecture.
1.8 FEASIBILITY STUDY
There are very few situations in which auctions cannot be performed due to existing market
conditions like in the case of a monopoly. It is more likely that the combination of different
legitimate interests of the internally involved parties will lead to a situation in which an auction
would seem inappropriate. By means of thorough and systematic preparation with all responsible
internal parties involved, we help establish a framework in which an auction can be carried out,
allowing the realization of the underlying savings potential. At the same time, we make sure that the
company's main sourcing targets are reached. Many of our clients initially thought that commitment
to the outcome of an auction would reduce their flexibility. They very soon came to the conclusion
that systematic preparation only shifts the required flexibility to a position closer to the beginning.
If a certain result is not to be supported, we make sure by systematic preparation and careful auction
design that it will never occur.
1.9 FEASIBILITY MATRIX
Feasibility CriteriaWtCandidate 1Candidate 2Candidate 3Operational Feasibility
Functionality-The description of the degree of how the system would well work.30%The system
has to be installed on computer and some plugins are required thus some functionality maybe
unavailable

Score:24%Fully support user required functionality.

Score:28%Fully supports user required functionality.

Score:29%Technical Feasibility
Technology-Assessment of the maturity availability and desirability of the computer technology
needed to support the candidate.30%All the users are currently available with the system in place.

Score:28%The users have problems in adding some dll files required to run the system
Score:25%The users are comfortable with the system running and performance.

Score:27%Economic Feasibility
Cost to develop:
30%Approximately Kshs.20000

Score:23%Approximately Kshs.15000

Score:26%Approximately Kshs.10000

Score:27%Schedule Feasibility
Assessment on how long the solution will take to design and implement10%Less than three months
Score: 7%Less than four months

Score:5%Less than two months

Score:8%Ranking100%82%84%91%

Chapter 2: LITERATURE REVIEW

The concept of auctions has existed for many years, but the research literature on auction theory
expanded dramatically after the seminal paper by Vickrey (1961). Since then, a rich set of related
literature, both theoretical and empirical, has evolved such as McAfee and McMillan 1987;
Milgrom 1989;Kagel 1995; Klemperer 1999; Krishna 2002.
Auctions use the market mechanism to solve the most difficult business problem, that of pricing the
product. With an auction, there is no guesswork for setting up a right price for the product or
service, since the price is set by the market though above a minimum price. Auction-based pricing is
sometimes referred to as "dynamic" or "fluid" pricing, in contrast to set or static pricing
mechanisms.
In a traditional marketplace, auctions can be of the open-bid or closed-bid type. Classification into
open or closed auction bidding is determined by criteria such as specific allocation rules, revealed
number of bidders, commodities, payment options, and phases of delivery. In an open-bid auction,
the bids partially make public each bidders private information about the true value of the contract.
Each bidder is thus able to learn from the bidding process and adjust their bid closer to the true
value of the contract.
According to one study, when the bidders have common values, the open-bid auction format
produces greater cost savings (Milgrom and Weber 1982).
In a different but somewhat popular classification framework (Huhns and Vidal 1999), traditional
auctions can be either single-sided or double-sided. In a single-sided auction, which includes

English or first-price open-cry auctions, Dutch auctions, first price auctions, and Vickrey auctions
(Maes et al. 1999; Vulkan and Jennings 1998), bidders are uniformly of type buyer or uniformly of
type seller. In a double-sided auction such as the clearing-house and continuous double type,
multiple bidders and sellers are admitted at once during negotiations.
Each auction type has advantages depending on the response time, privacy, avoidance of
speculation,fairness, and sale price. Other more complex, but less popular types, of traditional
auction may include combinatorial auction (de Vries and Vohra 2001) and multi-attribute auction
(Bichler 2000). Consumer-oriented auctions focus primarily on price competition in a structured
negotiated format of minimal bidding price, incremental bidding price, and "buy now" price
options, with well-defined rules for the submission and modification of bids. Popular consumerauction websites such as eBay and Onsale use an English auction model and share the property that
all status information of the bid is conveyed immediately and globally to all participants. The
auction progresses to higher bids and closes when no one is willing to exceed the current bid before
the auction closing time, making the highest bidder the winning buyer of the item under bid.
In traditional auctioning, the bidder must be present at the site of the auction, and the auction is
conducted locally and not publicized, which is not the case with an online auction. Online
auctioning helps people to carry out transactions with the convenience of their desktop computer. It
also helps to conceal the transaction partys identity, thus protecting their privacy. Within a
particular product category, bidders may find many brand or quality options. Searching for a
particular product that matches a bidders budget and taste is easy and fast. Once the item is listed
for the auction, prospective buyers or the bidders offer successively higher amounts for the item. All
bidders are strangers to one another and do not anticipate engaging in future transactions (Katsh et
al. 2000). The auction site administers the bidding process and announces the high bidder and price
at the conclusion of the auction. The seller dictates the conditions of sale in the auction listing
(eBay.com). While there are generally many bidders who compete with one another on price, the
merchandise is sold to only one buyer, who is the highest bidder. The winning bidder is expected to
pay first and then the seller delivers the goods. Besides facilitating the auction process, auction
websites can also specify the methods of payment that the seller will accept, although the parties
may negotiate this and other conditions through e-mail either before or after the auction is
completed. As such, the online auction website only facilitates the transaction and never takes
possession of either the goods or the payment (Snyder 2000). For their services in facilitating the
sales, such websites generally charge a small fee to the sellers based on certain pricing rules.
EBay is the most well-known and popularly used online auction website (Cohen 2002) with 69
million registered users and over 12 million items available for bid every day in hundreds of
categories and subcategories. Auction websites, including eBay, require an easy registration process
for all the users (sellers and bidders), and most aspects of the transaction such as shipping, payment
are the ultimate responsibility of the respective parties.
Some of the things that affect online auctioning are issues such as the effects of auction formats
(Lucking-Reiley 2000), the extent of the winner's curse (Bajari and Hortasu 2003), the last minute
bidding phenomenon (Roth and Ockenfels 2002), the value of seller reputation (Melnik and Alm
2002) and bidding behavior (Park and Bradlow 2005).
Consequently, the effectiveness of online auction websites can be measured in the context of user
satisfaction for the bidders in the current study. Since the 1980s, user satisfaction has been
considered an important measure of information systems success (Ives et al. 1983; Bailey and
Pearson 1983; Baroudi et al. 1986; Benson 1983; Doll and Torkzadeh 1988; DeLone and McLean
1992).The literature on user satisfaction of information systems that is the online auction system is
popularly classified into user information satisfaction and end-user computing satisfaction.
User information satisfaction (UIS) refers to the extent to which users perceive that the information
system available to them meets their information requirements. User information satisfaction is
often used as an indicator of user perception of the effectiveness of a management information
system (Bailey and Pearson 1983; Doll and Torkzadeh 1988). As a surrogate measure of
information system success in computing environments, UIS measures the success or failure of an

information system (Galletta and Lederer 1989). End-user satisfaction is the affective attitude
towards a specific computer application by someone who interacts with the application directly
(Doll and Torkzadeh 1988, p. 261). To measure end-user computing satisfaction (EUCS), Doll and
Torkzadeh developed a 12-item survey instrument comprised of 5 variables: content, accuracy,
format, ease of use, and timeliness which was a synthesis of the Ives et al. (1983) measure of UIS.
Instruments that assess both general UIS (e.g., Ives et al. 1983, Bailey and Pearson 1983), and
application-specific UIS, or end-user computing satisfaction EUCS (Doll and Torkzedah 1988),
have been widely used by researchers (Gelderman 1998; Igbaria 1990; Somers et al. 2003). DeLone
and McLean (2004) identify three reasons why user satisfaction has been widely used as a measure
of information system success: a high degree of face validity; development of reliable tools for
measure, and conceptual weakness and unavailability of other measures. In recent years, several
studies have used UIS and EUCS to assess customer satisfaction for online purchasing (Abbott et al.
2000; Cho and Park 2001; Eroglu et al. 2003; Kim and Lim 2001; Kohli et al. 2004; Lam and Lee
1999; McKinney et al. 2002; Reibstein 2002; Shemwell et al. 1998; Szymanski and Hise 2000,
Wang et al. 2001;), and to measure website success (Abdinnour-Helm, et al. 2005).
Based on the UIS and EUCS measures, Wang et al. (2001) developed a 43-item instrument to
measure customer information satisfaction (CIS) toward websites that market digital products and
services. Using exploratory factor analysis on 520 samples, the study identified 21 items to measure
customer support, security, ease of use, digital products/services, transaction and payment,
information content and innovation.
Collectively, these studies have provided important insights into consumer perception by identifying
features of Internet stores that have considerable impact on building customer satisfaction.
However, there is still no widely accepted consensus on the satisfaction construct. This provides
ample research opportunities to extend past studies in the context of new technologies. Of particular
importance for the analysis is that a conclusive set of antecedent variables of consumer satisfaction
with Internet shopping is missing. Furthermore, no studies have been conducted to empirically
evaluate bidder (and seller) satisfaction for online auction websites. Bidder satisfaction is therefore
defined as the overall affective evaluation a bidder has regarding his or her experience relating to
the online auction websites.
A review of the literature on user satisfaction and auction-related literature suggests the proposal of
nine constructs to identify the bidder satisfaction research framework. They are as follows:
1. Content refers to the relevance and completeness of website content. Madu and Madu (2002)
argue that Internet users rarely read web pages that are detailed. Further, Nah and Davis (2002)
argue that consumers want to find the information quickly and with little effort. It is therefore
important to deliver concise and relevant information on the product, seller, and transactional terms
and conditions on the auction website. Relevant and reliable information can also minimize the
concern of fear about the website (Molla and Licker 2001). Based on past studies in e-commerce
(Madu and Madu 2002; Katerattnakul 2002), relevant and complete information can help users to
make competent and informed bidding decisions and therefore can be considered as a determinant
of bidder satisfaction.
2. Format of the auction website reflects the information presentation and the layout. As consumers
search for products and sellers on the web, the search activity can be influenced by the degree of
difficulty and the amount of time taken at a website (Waite and Harrison 2002). It is therefore
important to provide relevant information in a format that makes the navigation easy (Molla and
Licker 2001). The media richness of the websites in terms of graphics, texts, and layouts can make
an auction site attractive and useful (Madu and Madu 2002; Waite and Harrison 2002). A wellformatted website can translate into higher interactivity which can increase effectiveness and
efficiency in delivering relevant information to the bidders, and therefore enhance bidder
satisfaction (Teo et al. 2003).
3. Ease of Use is defined as the degree to which the auction website is user-friendly (Doll and
Torkazadeh 1988). In the context of auction websites, consumers may assess the websites based on
how easy they are to use and how effective those websites are in helping bidders accomplish their

bidding and winning activities. An easy-to-use website can enhance bidders' positive impressions of
the site (Molla and Licker 2001; Yoo and Donthu 2001; Zeithaml 2000).
4. Timeliness of information is the extent to which the auction-related information is updated for
bidders (Katerattnakul 2002; Madu and Madu 2002; Kim and Lim 2001). Real-time or timely
information helps the bidder know the status of their bid before, during, and after the bidding
process (Tiwana 1998; Molla and Licker 2001). According to Madu and Madu (2002), when the
website is not updated promptly, the website cannot deliver the expected performance and therefore
may provide no added value to consumers.Bidders will experience frustration if they realize that the
website is slow in reflecting the bidding status.
5. Security of the auction website refers to the ability to protect bidders personal information and
protecting the bidders from fraudulent sellers. Security has a significant impact on consumer
intentions to shop online (Molla and Licker 2001; Limayem et al. 2000). Based on their empirical
study, Devaraj et al.(2002) cautioned that security has been a serious issue in online purchases and
an impediment to the acceptance of online purchasing. Based on these and other studies on ecommerce security (Madu and Madu 2002; Szymanski and Hise 2000), this study argues that bidder
privacy and the security of auction transactions are important for building long term bidder
relationships with a particular auction site.
6. Product Variety refers to the different product categories such as bedroom furniture and different
brands within each product category listed for purchase on the auction website. According to
Reibstien (2002), product selection, information, prices, and presentation are important factors for
e-business. Different brands listed within each product category can help bidders evaluate the
bidding price among the several listings of the same product and set a maximum bid price for
themselves. Product variety can help the bidder in the post-bidding evaluation of the purchase
should the bidder win the auction. For a more determined bidder, the bidder can simultaneously bid
on multiple listings of the same product from the same or a different seller. Products that are
available on auction websites can attract and engage buyers to bid.
7. Transaction refers to the post-bidding activities facilitated by the auction website to transfer the
merchandise from the seller to the auction winner and payment from the winner to the seller. This
factor is similar to the traditional transaction-specific affective response (Halstead et al. 1994;
Oliver 1989). Auction websites that have well-established guidelines and protocols to safeguard the
economic interest and timeliness of exchange of both the seller and the winner will lead to greater
satisfaction for the buyer. It is reasonable to infer that if the seller or auction website creates
difficulty for the buyer to obtain the product purchased, buyers and bidders may choose another
auction website for future purchases.
8. User satisfaction is operationalized in terms of repeat purchases, repeat visits, and user surveys.
DeLone and McLean (2004) distinguish between user satisfaction and net benefits for e-commerce
based systems in their Information Systems Success Model (ISSM) (DeLone and McLean 1992).
User satisfaction is found to be an important dependent variable for measuring customers opinions
of an e-commerce system and should cover the entire customer experience cycle resulting from
system usage(Delone and McLean 2004). DAmbra and Rice (2001) also argue that the construct of
net benefit,operationalized in terms of cost savings, expanded market, incremental additional sales,
reduced search costs, and time savings, captures the balance of the positive and negative impacts of
e-commerce on customers.
9. Net benefit is the most important success measure, because it captures the balance of the positive
and negative impacts of e-commerce on customers, suppliers, employees, organizations, markets,
industries,economies, and even society as a whole. The net benefits construct immediately raises
three issues that must be addressed: What qualifies as a benefit? For whom? And at what level of
analysis? (DeLone and McLean 2004). Thus, net benefit is probably the most accurate descriptor
of the auction website for the buyer in terms of tangible benefits (mainly price paid) achieved when
products are purchased through auction.
Thus from research primary objective of auction buyers is to reap the tangible benefits that are
derived from successful bidding. However, the bidding process may not always result in a win for

the bidder. Bidder satisfaction is a measure that can be applicable to any bidder regardless of the
final outcome of the bidding process, whereas net benefit is a measure that is only applicable to the
winning bidders of auction. Compared to all the bidders, two additional variables seem to be
appropriate for the buyer that continues to interact with the auction website after the auction has
been closed. Based on the EUCS and CIS, it can be conceptualized that content, format, ease of use,
timeliness, and security are important variables that determine bidder and winner satisfaction.
Online auctions websites nowadays serve as a virtual marketplace where bidders who can be
geographically dispersed compete to close the deal on auctioned items listed by sellers. At the
closing of the auction, the highest bidder emerges as a buyer provided that the bidder meets all the
terms and conditions, including the minimum price, generally set by the seller. Online auctions
streamline the toughest and often the most frustrating part of the purchasing process between the
buyers and the sellers, such as price negotiation.Hundreds of thousands of individuals and small
businesses are engaged in selling products via online auctions on a fulltime basis (Adler, et al
2002). Online auctions allow faster and less expensive transactions with no geographical barriers
(Lee and Clark 1996).
The popularity of online auctions is likely to grow, as buying and selling is a very basic part of
human nature. However, not many website has been able to attract the desired numbers of bidders
into the auction process. Successful online auction website design can play a significant role in the
overall marketing communication mix. Successful sites are complementing direct selling activities,
present supplemental material to consumers, project a brand image, and provide basic company
information and services to their global customers. Auctions are a popular form of price
determination in e-commerce due to their simplicity and efficiency (Jin and Wu 2006). Recent
statistics have showed that 80 percent of highly satisfied online consumers would shop again within
two months, and 90 percent would recommend the websites to others. On the other hand, 87 percent
of dissatisfied customers would permanently leave their Internet merchants without registering any
complaints (Online Auction Survey Summary 2001). This has clear implications on the lack of user
satisfaction.
According to Wang et al. (2001), effectiveness measures of e-marketing must in the future
incorporate different aspects of customer satisfaction to become a diagnostic instrument for
practical and theoretical use of which will also help auction website companies investigate ways to
improve their websites to attract new bidders and improve upon the bidders loyalty to their website
(Anderson and Srinivasan 2003). In the long run, customer-centric auction websites that develop
and maintain genuine global customer relationship strategies and effectively manage the customer
online shopping experience will have a higher probability of surviving in the competitive virtual
auction marketplace.
Thus there is need for customer-oriented approaches to designing and conducting online auctions
taking into consideration of the bidders satisfaction.

Chapter 3: METHODOLOGY
3.1 REQUIREMENT ELICITATION
In this stage, Information is gathered from the multiple stakeholders identified. Analyst draws out
from each of these groups what their requirements from the application are and what they expect the
application to accomplish.
Considering the multiple stakeholders involved, the list of requirements gathered in this manner
could run into pages.
The level of detail of the requirements list is based on the number and size of user groups, the
degree of complexity of business processes and the size of the application.
The information used to understand the problem and to help in finding a solution to the current
problem was from:
Seller, who has one or more items (also called goods) to sell;
Bidder, who submits a bid (the highest price he is willing to pay);
Auctioneer, who acts on behalf of the seller to determine a winning price (clearing price) and a
bidder as the winner.
Winner, the bidder chosen by the auctioneer(s) to pay the seller the clearing price and get the goods.
Source of data
The techniques used are:
Interviews - medium to collect requirements mostly through oral means.
Questionnaires - A document with pre-defined set of objective questions and respective options is
handed over to all stakeholders to answer, which are collected and compiled.
Attending live auctions.
3.2 REQUIREMENT ANALYSIS
This is a phase which we analyses, categorize and organize into related subsets and explore each
requirement for consistency, completeness and ambiguity.
The technique used in the requirement analysis is;
Models
Models depicts user scenarios, functional activities, problem classes and their relationships, system
and class behavior and the flow of data as it transformed.
3.3 REQUIREMENT SPECIFICATIONS
Requirement specification is a comprehensive description about how the system is expected to
perform.
The technique used is:
Pseudocode
Pseudo code is a detailed yet readable description of what a computer program or algorithm must
do, expressed in a formally-styled natural language rather than in a programming language. Pseudo
code is sometimes used as a detailed step in the process of developing a program. It allows
designers or lead programmers to express the design in great detail and provides programmers a
detailed template for the next step of writing code in a specific programming language
3.4 DESIGN

3.4.1 DATA DESIGN

Data design is design activity, which results in less complex, modular and efficient program
structure. The information domain model developed during analysis phase is transformed into data
structures needed for implementing the software.
The technique used is:
Schema
This is the the organization of data as a blueprint of how the database is constructed that is it can be
divided into tables in relational database.
3.4.2 ARCHITECTURAL DESIGN
Architectural design represents the structure of the data and program components that are required
to build a system.
The technique used is :
Structured Flowchart
A Structure Chart (SC) in software engineering and organizational theory is a chart which shows the
breakdown of a system to its lowest manageable levels. They are used in structured programming to
arrange program modules into a tree.
3.4.3 INTERFACE DESIGN
Interface design is the designing of user interface for systems with the focus of maximizing the user
experience.
The technique used is:
Modeling
This is the use of model to conceptualize and construct a system. Models are used to design the
various components of the system at various points of view.
3.4.4 DETAILED DESIGN
This is the procedural which transforms structural elements into procedural description of the
software components. It involves description of algorithms that implement the procedures and logic
of the components.
The technique used is:
Prototyping
This is the releasing of a product built to test a concept or process or to act as a thing to be
replicated or learned from.. A prototype is designed to test and try a new design to enhance
precision by system analysts and users. Prototyping serves to provide specifications for a real,
working system rather than a theoretical one.
Chapter 4: SYSTEM ANALYSIS AND DESIGN
4.1 SYSTEM REQUIREMENT SPECIFICATION
4.1.1 USE CASE DIAGRAM
It is a representation of a user's interaction with the system that shows the relationship between the
user and the different use cases in which the user is involved

SCENARIOS
STEPSDESCRIPTIONMain user scenario

B:Buyer
S:Seller1S:Post item2B:Views available items3B:Bids on item4S:Sells to highest bidder5B:Buys
item

4.1.2 DATA FLOW DIAGRAMS

A data flow diagram is graphical tool used to describe and analyze movement of data through a
system. These are the central tool and the basis from which the other component are developed.
LEVEL-0 DFD

LEVEL -1 DFD

LEVEL-2 DFD

4.1.3 ENTITY RELATIONSHIP DIAGRAM

It is a graphical representation of entities and their relationships to each other.

4.1.4 DATA DICTIONARY

ENTITYDESCRIPTIONATTRIBUTEDATA TYPEMAX
LENGTHDEFAULT_VAUEBuyerSomeone who is searching for an item to purchaseUsername
-this is a selected name by the buyer.
Id -This is the identification number of the user.
Password-this is the password of the buyer's account
Email this is the email of the the buyer.Varchar

Int

Varchar

Varchar20

12

40Buyer1

050

password

antonygallis@gmail.comSellerThis is someone who is bidding his itemUsername this is the name

of the seller.
Id this is the identification number of the seller.
Password this is the password of the seller's account.
Email this is the email of the seller.
Item this is the item that the seller is auctioningVarchar

Int

Varchar

Varchar20

12

40Seller1

100

seller*auction

antonygallis@yahoo.com

product_defaultAdminThis is the administrator in-charge of the auctioning.Username this is the

username of the admin.
Password this is the password of the admin.Varchar

Varchar2
20

12Admin

adminauctionItemThis is the item being auctioneditem_name this is the name of the item.
item_number this is an assigned number of the item being sold.
Status this is the status of the item, that is whether sold or available.Varchar

Int

Varchar20

9Watch

001

Available
4.2 SOFTWARE DESIGN SPECIFICATION
4.2.1 DATA DESIGN
DATABASE SCHEMA

4.2.2

ARCHITECTURAL DESIGN
STRUCTURE CHART

4.2.3 INTERFACE DESIGN

WELCOME PAGE
This is the welcome page after launching the application.

HOMEPAGE(without any items available)

This is the default landing page of all users of the application when there are no items available for
auction.

HOMEPAGE(with items available)

This is the default landing page of all users of the application when there are items available for
sale.

LOGIN PAGE
This page allows a registered user to login into the system.

REGISTRATION PAGE
This page allows a visitor to register into the site.

BIDDING PAGE
This page allows a user to bid on an item.

AUCTION WON PAGE

This page shows the bid that the user has won.

SELLER DETAILS PAGE

This page shows the details of the seller of an item.
4.2.4 DETAILED DESIGN
This is the procedural which transforms structural elements into procedural description of the
software components.
PSEUDOCODE
start
open homepage
prompt visitor/user to login
if visitor=logged in
allow buy and sell items
allow viewing items
else
forward to register page and prompt user to register
endif
stop
PSEUDOCODE(login)
start
Enter username
Enter password
Click login
if username && password =correct
enable bidding items
enable posting items
else
display error message window
endif
stop
PSEUDOCODE(registration)
start
Enter preferred username
Enter preferred first name
Enter preferred last name
Enter preferred email
Enter preferred password
Enter preferred contact
Enter password
Click Register
if username!=null || first name!=null || last name !=null || email!=null || password!
=null || contact!=null
redirect to login page

else
display error message window
redirect back to register page
endif
stop
PSEUDOCODE(bidding)
start
Enter bidding amount
if user != logged in
display error message window
else
display success message window
redirect to homepage
endif
stop
PSEUDOCODE(available_items)
start
Enter search name
if enter name is set
display items related to search
else
display all items
endif
stop

4.2 SYSTEM TESTING AND IMPLEMENTATION

During and after implementation process, the program being developed must be checked to ensure
that it meets its specification and delivers the functionality expected by the users.
The ultimate call of verification and validation is to establish that the software system is fit
for the purpose .Verification attempts to answer are we building the product right? The aim
involves checking that the software conforms to its specification .it checks that it meets with
functional and non-functional requirements. On the other hand, Validation Intents to answer are we
building the right product? The aim is to ensure that the software system meets the customer
specification. It goes beyond checking that the system conforms to its specification.
The two complementary approaches to validation and verification are testing and inspection
Software Testing.
Testing involves running new or revised programs to determine if they process all data properly.

The test is done using test data that is made available by the users and developers of the system.
This process helps to evaluate the software product developed. Test data is a set of data created for
testing new or revised programs. It should be developed by the user as well as the programmer and
must contain a sample of every category of valid data as well as many invalid conditions.
Functional or black box Tests
Functional tests on the system were implemented by providing the providing stimulated nominal
inputs to the system and observing the actual output versus the expected output and results noted
down.
Structural or White Box Tests.
This one involved checking the internal logic of the program modules. Stimulated data was availed
and this test data was input into the system to check the validity of the algorithms and functions that
performed the tasks at hand. The major things that were tested during this kind of testing were
conditional statements, use of Boolean variables, loops and iterations.
Acceptance tests
This include Beta Testing and Alpha testing
Beta Testing- Testing by the customer at the customers site .this exposes the software to the real
environment and any errors are reported to the developers.
Alpha testing- this is the final stage in the testing process before the system is accepted for
operational use. It is done by the customer at the Developers site.
Stress tests
This is testing the software with abnormal or extreme data usually with an intent to break down the
system. It attempts to find the limits with which the system will fail through abnormal quantities of
inputs.
Inspection
It is analyzing and checking system representation such as design, diagram requirement
documentation and source code. Inspection may be supplemented by some automated analysis of
source text of a system or associated document .The two complementary approaches to
validation and verification are testing and inspection
Software Testing.
Testing involves running new or revised programs to determine if they process all data properly.
The test is done using test data that is made available by the users and developers of the system.
This process helps to evaluate the software product developed. Test data is a set of data created for
testing new or revised programs. It should be developed by the user as well as the programmer and
must contain a sample of every category of valid data as well as many invalid conditions.
Functional or black box Tests
Functional tests on the system were implemented by providing the providing stimulated nominal
inputs to the system and observing the actual output versus the expected output and results noted
down.
Structural or White Box Tests.
This one involved checking the internal logic of the program modules. Stimulated data was availed
and this test data was input into the system to check the validity of the algorithms and functions that
performed the tasks at hand. The major things that were tested during this kind of testing were
conditional statements, use of Boolean variables, loops and iterations.
Acceptance tests
This include Beta Testing and Alpha testing
Beta Testing- Testing by the customer at the customers site .this exposes the software to the real
environment and any errors are reported to the developers.
Alpha testing- this is the final stage in the testing process before the system is accepted for
operational use. It is done by the customer at the Developers site.
Stress tests
This is testing the software with abnormal or extreme data usually with an intent to break down the
system. It attempts to find the limits with which the system will fail through abnormal quantities of

inputs.
Inspection
It is analyzing and checking system representation such as design, diagram requirement
documentation and source code. Inspection may be supplemented by some automated analysis of
source text of a system or associated document ..
4.2.1 TESTING PROCESS
The testing process that was used involved:unit testing
The involves testing of individual forms to ensure correctness. Each form is tested independently.
Module testing
This is testing of individual program components. A module is a collection of related components
(procedures, functions). The module performs a sub function of the system .the modules
components are tested together to ensure correctness of that sub function.
System testing
The purpose of the system testing is to use the system in a controlled test environment, but to do so
as the user would use the system in production environment. The system test should demonstrate
that the complete system would do what it is supposed to do in the user environment.
4.2.2 TEST CASES
A test case is a set of conditions under which a tester will determine whether an application or one
of its features is working as it was originally established for it to do. The mechanism for
determining whether a software program or system has passed or failed.

No.TEST CASESCASE TYPEEXPECTED RESULTACTUAL RESULTPASS/FAIL1LoginEnter

wrong username and passwordThe system throws an error and prevent logging inThe System
display a
window popup with message wrong Username and
Password
failThe system should redirect to a pageThe system displays homepage for user/adminpassEnter
correct username and password2RegistrationRequired field validationMandatory field should not be
blankYou have to enter some value in mandatory fieldspassRequired field validationMandatory
field should be blankYou have to leave blank in mandatory fieldsfail3Bid on itemRequired field
validation
Mandatory fields
should not be blank
You have to enter Bidamount into mandatory fields
passRequired field
validation
Mandatory fields
should be blank
You have to leave blank in mandatory fieldsfail4Add itemRequired field
validation
Mandatory fields
should not be blank
You have to enter some value in mandatory fieldspassRequired field

validation
Mandatory fields
should be blank
You have to leave blank in mandatory fieldsfail
Chapter 5: CONCLUSION AND RECOMENDATION
5.1 CONCLUSION
The auction system application is a better way to auction items instead of the old traditional
auctioning method thus the system functionality should be enhanced and operate on real time to
facilitate the auctioning process.
5.2 RECOMENDATION
Improve the performance of this application by hosting the database on a real server.
Port the application to the mobile platforms such as IOS and windows mobile.
Improve the application layout to make it more user-friendly.
Integrate delivery methods in the application to facilitate the seller deliver the item to the bidder.
Integrate a payment method for the user to pay for the item.
More Functionality to be added that make this website to more user Friendly.

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